Medigap Changes - Affordable Care Act

Today I was notified of recent reports of Medigap Changes that are trying to get pushed through with the Affordable Care Act (OBAMA-CARE). The major change that is trying to get pushed through is "add cost-sharing to Medigap plans." We have mentioned this in several other articles but will re-describe what new changes have risen.

The reason the Medigap changes are being discussed for policies like the "Medigap Plan F" is because there is no cost sharing on these plans. Many believe this causes over utilization by beneficiaries; however they do not consider the unintended impacts this has on beneficiaries.

Medigap Changes - Cost Sharing Implementation

This has not been passed yet but below are some of the effects this could have on Medicare beneficiaries.

  1. This is believed to cause a Medicare Beneficiary to avoid going to the hospital/doctors office for care. Which could possibly worsen their health in the long haul.
  2. Medigap Plan F premiums would shoot through the roof if this cost sharing was eliminated on new plans. Why? That is because there would be no new beneficiaries coming onto the plan so the only people left on these plans would be individuals with health issues that could not change.
Is there anything else being discussed as possible changes for Medigap policies?
  1. Benefit redesigns that would redistribute cost burdens (This already happened with the Medicare Modernization Act of 2010)
  2. Prohibiting or taxing Medigap "First Dollar Coverage" (mentioned above)
  3. Raising Medicare age
  4. Other things as well that are a little too complicated to review in a short article.

We recommend choosing a Plan G Medicare Supplement which can avoid possible Medigap Changes. This plan will also prevent higher rate increases which can come from Guaranteed Issue supplemental plans. You should call 1-877-936-2991 today to get a cost comparison completed of the Plan F and Plan G policies.


Possible Medigap Changes to the Plan F - Thanks to the Affordable Care Act